Wednesday, April 11, 2012


triple tops sometimes come in slightly altered forms.

Today  /cl rallied and eventually topped out - but the classic triple top wasn't there.  Instead, the old classic Head/Shoulder top formed with the right shoulder also being a perfect backtest of the rising trendline that broke intraday.

 A big volume 1-min candle finally printed on a big down tick and that was clear confirmation the /cl would be giving back the rest of the day.

 Once again -- a triple pattern emerges.

One thing to look for when you can't see it yet -- draw the prevailing trendline.  The TL broke at 14:03 and the final top was in 14:22.  So the TL break gives you plenty of warning and cues you to watch for a valid pattern.

Note: If it isn't obvious:   triple patterns have SYMMETRY.  In this case, both shoulders are almost exactly 25 minutes away in time from the head.     shoulder - 25m - head - 25 m -- shoulder   -- and DROP.

 If the symmetry is not there - it's not the droid you're looking for.

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